The department of telecommunications has decided to shelve its plans to fill up the fourth cellular operator's berth in states, which did not receive bids from private players.

The move comes after Bihar, West Bengal, Orissa, Assam, the Andamans and the north- eastern states did not get a response from private cellular operators despite repeated attempts.

The government had invited bids thrice for these states, but drew a blank each time.

Senior government officials said it had been decided that a wait-and-watch policy would be adopted and Bharat Sanchar Nigam Ltd would be allowed to roll out its cellular network in these states.

"Its not that these states will be left without any mobile services. BSNL is rolling out its network and a few private cellular operators are already present in these states," officials said.

They added that since there was not much demand for mobile service in these states, a fourth cellular operator might not be required.

"The total subscriber base in these states is not more than 500,000 users. We feel that two operators are good enough to cater for that kind of a demand," officials said. Reliance is the second operator, which is offering services in these states at present.

Cellular operators had kept away from bidding in these states on grounds that there was no clarity on government policy. They said the government's decision to allow wireless in local loop limited mobility had jeopardised their business plans for the existing operations and as such there was no point in acquiring new circles till there was a decision on the WLL controversy.

Cell firms had also said these states, which fall in the Circle C category, comprise territories with low returns compared to metro circles.

The first round of bidding for the fourth cellular operator's berth was held in August 2001. While the government got bids for 17 states, most of the Circle C states were left out.

The bids were invited again in September 2001 and then again at the beginning of 2003.